Oil prices fell 2.5 percent on Tuesday, reversing direction after Monday’s dramatic rally as dealers focused on slowing global energy demand and doubts over a U.S. plan to rescue the financial sector.

On the Argentine debt market, locally traded government bonds fell 1.4 percent on average in over-the-counter trade as investors pocketed profits from recent gains after the government said it is studying a proposal to reach a deal with “holdout” creditors who rejected a 2005 debt swap.

The announcement by President Cristina Fernandez on Monday lifted bond prices.

The peso-denominated Disc bond lost 2.6 percent ARDISC=RASL.

The peso, which is heavily controlled by the Central Bank, closed flat at 3.0975/3.1000 per dollar ARS=RASL in formal interbank trade. In informal trade between foreign exchange houses, as measured by Reuters, the peso weakened 0.24 percent to 3.1475/3.15 per dollar ARSB=. (Reporting by Jorge Otaola and Walter Bianchi; Writing by Kevin Gray; Editing by Dan Grebler)